The Board of Directors dthe Snams, meeting today under the chairmanship of Monica de Virgiliishas authorized a potential bond issue in US dollars in multiple tranches up to a maximum overall amount of 3 billion dollars, to be completed within the next 18 months.
The bonds they will be intended to be subscribed, even upon resale, exclusively by professional investors. The bonds, if issued, will allow Snam to further expand its credit investor base and diversify its funding sources.
Snam lists dual tranche bonds on MOT Professional
Only yesterday, Snamannounced the listing, on the segment MOT Professional of the Italian Stock Exchange, of the dual tranche bond issue, the first ever by a large corporate for bonds aimed at institutional operators. This is the bond issue Sustainability-Linked dual tranche of 600 million pounds over 12 years and 750 million euros over 7 years.
Snam has so far listed ten financial instruments on the non-regulated ExtraMOT/Access segment of the Italian Stock Exchange. This move to the MOT Professional marks “a strategic evolution, demonstrating the profitable collaborative relationship between Snam and the Italian Stock Exchange and, more generally, the greater attractiveness and efficiency of the national financial market”, we read in a note.
More attractive national market
“The listing of Snam’s two Sustainability-linked bonds on the professional segment of the MOT market it makes us proud because it represents the first instrument issued by a large Italian corporate on this market of the Italian Stock Exchange – commented Maurizio Pastore, Group Head of Debt and Funds Listing of the Euronext Group – Snam’s choice confirms the MOT as the first bond market for liquidity in Europe, a segment that offers simplified and rapid access to retail and institutional investors.”
The overall amount of the issue – which took place last week – was approximately 1.5 billion euro equivalent. The offer collected respectively 750 million euros at 7 years and 600 million pounds at 12 years, con this last tranche which marks Snam’s debut on the UK market. Both tranches are linked to emissions reduction objectives dthe Group’s CO2.
Pass: successful operation
“Successful operation has received application for 3 and a half times essentially what the issue offer was, and for us it was the debut on the sterling market, which allows us to diversify the company’s financing sources”, explained Snam’s CFO, Luca Passa . “It is an operation that we define as sustainability-linked – said the CFO – with both tranches linked to the reduction of Scope 1, 2 and 3 missions; the sterling tranche also has Scope 3, which is somewhat of a novelty on the market. These are the emission reduction targets that the company has and which were recently reconfirmed in the presentation of the October transition plan to the market”.
“We are obviously listed with our shares here on the Italian Stock Exchange – continued Passa – but being able to list our institutional bonds in primary listing on the MOT also gives us great pleasure also because the company still has a net debt which is equal to 15. 9 billion today and will be growing, and therefore be able to also listing the debt on the Italian Stock Exchange – and therefore at home – is certainly something special for us”.
